On August 5th, George from Phils Trading Co. in Park Slope, NY called Harrys Printers in Ithaca, NY to ask about pricing and delivery for an 2,500 black t-shirts with the phrase P.S. I Love You emblazoned on the front and Park Slope New York written on the back. Phils has sold these shirts before and found them popular, but only among Park Slope residents. Harry says he can print and deliver then to Phils for $5.00 per shirt, payable 60 days after delivery.
On August 6th, George sends Harry a purchase order for the 2,500 t-shirts which states Price – $5.00 per shirt. Delivery – FOB Acme Supply House., Park Slope, NY. Payment – 60 days following delivery.
On August 8th Harrys sends George a document labeled Confirmation of Order that said, in relevant part, this confirms your order for 2,500 Shirts at a price of $5.00, FOB Harrys Printers, Ithaca, NY
On August 25, Harrys ships the 2,500 t-shirts to Phils designated supply house and sends Phils an invoice for $13,200, including shipping costs of $700. The shipping voucher states all charges are payable within 60 days from date of receipt of goods.
On August 31, Harry hears through the grapevine that Phils Trading is having serious money problems. A friend tells Harry that Phils was three weeks behind on a $50,000 account with his firm and the friend had heard they were 4 weeks behind on a $20,000 account with another supplier.
Harry calls George and asks if what he heard was true. George confirms it, but tells Harry it is just a short term cash flow problem and it will have no effect on Harry getting paid by the end of the 60 days. Not feeling any calmer, Harry tells George that he wants a certified check for the full amount in 72 hours or he is sending some guys to Park Slope to pick up My shirts.
Phil’s did not make any payment by the 72 hour deadline and on September 5th Harry sent three large employees to Acme Supply House who, not wanting any problems, turned the shirts over to them. The employees brought the t-shirts back to Harrys. Acme sent Phils a bill for $300 for the time its workers spent on the issue.
On September 15th, Harrys sold 1,000 of the shirts to Evelyns Gift Shop in Park Slope, a major competitor of Phils, for $4.00 per shirt, FOB Ithaca, NY. On September 29th, Harrys sold another 1,000 shirts to Evelyns, FOB Ithaca, NY. The last 500 shirts are still in Harrys warehouse.
As it turns out, George was right. Phils cash flow problems were temporary and by October 1, all of Phils back bills were paid off, and Phils could have paid Harrys as well. Phils sues Harrys for breach of contract and Harrys counterclaims alleging breach of contract also.
Analyze the claims and defenses of the parties. Please analyze the parties positions and possible damage claims.
**Must be 2 to 2.5 pages in length**
